The Saudi Arabia Insurance Authority warned that car dealerships, retailers and other entities offering or selling extended warranties without its required license are violating the Cooperative Insurance Companies Control Law. Extended warranties are insurance products that may be offered in Saudi Arabia only by licensed and registered insurance companies. Unlicensed insurance activity may result in a fine of up to SAR 2 million, imprisonment for up to four years, or both, alongside other applicable legal procedures. The authority previously identified retailers and vehicle dealers selling the product without authorization and is coordinating with other bodies to enforce compliance. Extended warranties cover certain repair or replacement risks after an original warranty expires.
2026-03-31Saudi Arabia Insurance Authority
Saudi Arabia Insurance Authority warns unlicensed extended warranty sales breach insurance law, with fines up to SAR 2 million
The Saudi Arabia Insurance Authority warned that extended warranties may be offered only by licensed and registered insurance companies. Unlicensed sellers may face fines of up to SAR 2 million, imprisonment for up to four years, or both.